Get early access to superannuation on a Student Visa!
Get early access to your superannuation fund
In an attempt to help international students in Australia, the Government recently established that temporary residents will be able to get early access to their superannuation of up to $10,000 before 1st July 2020. If you are an international student or a temporary resident and would like to get early access to superannuation, read on to find out how to prepare your application!
How much can be withdrawn?
If you have been affected by the crisis you can make one application for up to $10,000 of your superannuation in 2019–20 financial year.
In case you decide to withdraw from your fund, you will not need to pay tax on amounts released and will not need to include it in your income tax return.
Who is it for?
To apply for early release as a temporary resident, you must satisfy one or more of the following requirements:
- You hold a student visa which you have held for 12 months or more and you are unable to meet immediate living expenses.
- You are a temporary skilled work visa holder, your working hours have reduced to zero and you remain engaged with your employer
- You are a temporary resident visa holder (excluding student or skilled worker visas) and you cannot meet immediate living expenses.
You will not be required to attach evidence to support your application; however, you should retain records and documents to confirm your eligibility.
How to withdraw your superannuation fund
Step 2. After entering your ATO account, scroll to the middle section of the page and click on coronavirus release.
Step 3. A page will open with the details of the eligibility that must be met to apply. On the application tab, click apply.
Step 4. In the next page, mark mandatory eligibility fields accordingly. If you are an international student or temporary resident in Australia, make sure to mark the field ‘I am the holder of current temporary resident visa’. Click next to continue.
Step 5. On this page, you will be requested to choose the reason for requesting an early release of your superannuation fund. Choose the option that is the most appropriate for your case, and click next to continue.
Step 6. On this page, you will be required to choose the amount you wish to withdraw from your superannuation (image 1). As mentioned before, the maximum amount you will be able to withdraw for the first financial year is AU$10,000. Chose the fund and amount you would like to withdraw. Also, insert the bank details you would like the fund to be deposited into. Click next to continue (image 2)
Step 7. On the next page, you will be able to check your details. Make sure the details inserted are correct. Read the declaration and check the box to agree with the statements.
Step8. Submit your application to complete. Make sure to save your reference number ATO receipt ID and print it if necessary.
Consider the impact on your balance at retirement before applying
If you are experiencing financial stress as a result of coronavirus, you may have a real and immediate need to access your super early in these challenging times. However, before you do, it is important to consider that $20,000 in your super now would grow to a significantly higher amount by the time you retire because of compound interest.
Put simply, compound interest is “interest on interest”: as your super balance earns interest and grows over time, you earn interest on this higher balance. And the longer you keep earning interest on your balance, the more you will forgo by accessing your super now.
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